The inflation rate fell again in April, to 2.7%, which is perhaps the last signal expected by the Bank of Canada to start lowering interest rates in June.
The Consumer Price Index increased by 2.7% in April, indicates Statistics Canada, after an increase of 2.9% in March. The decline is mainly explained by the slowdown in the rise in food prices, which offset the increase in the price of gasoline.
The price of gasoline increased by 6.1% in April, after increasing by 4.5% in March. “Increased costs associated with switching to summer blends, rising oil prices due to supply concerns and the increase in the federal carbon tax have contributed to the price growth,” says Statistics Canada.
Food prices continue to rise, but less quickly. Prices in grocery stores showed an increase of 1.4% year over year in April compared to 1.9% in March. It is mainly the price of meat which has slowed down growth.
Between April 2021 and April 2024, prices in grocery stores increased by 21.4%, says Statistics Canada.
In restaurants, prices increased by 4.3% in April, after an increase of 5.1% in March.
In Quebec, the inflation rate slowed from 3.6% in March to 3% in April.
Core inflation measures monitored by the Bank of Canada continued to move in the right direction in April, raising the possibility of a key rate cut at its next decision on June 5. The CPI-med increased from 2.9% in March to 2.6% in April and the CPI-tronq increased from 3.2% in March to 2.9% in April.